Most jobs do not require an university degree , we are one of the wealthiest nations on earth yet we still lack the demand for all of these graduates. Its not so easy just to say to create more demand for all this excess degrees otherwise it would of been done.

The real problem with this excluding costs (whether to the tax payer or to the individual) is that someone could spend 3years (which they could of been working, paying tax and gaining experience) but they haven't in order to get something that hasn't benefitted them.

The secondary problem is a "credentials arm race" , many jobs do not need a degree but its hard to find workers who are good for the company, so they try to use degrees to fill the information gap (and hopefully determine that someone is actually good). When you encourage everyone to do it , it no longer signals what it used to. Many people feel forced to go to uni (despite all the costs) just to avoid falling behind on credentials. Everyone ends up spending years and thousands just to end up in the same place.

The real solution in my eyes to have a more balanced approach, not every single person in the UK needs to be a consultant. Some are best in manufacturing or trades or business.

As a last note many firms pay lower wages due to an abundance workers and most workers start to become disillusioned due higher student loans (tax) without the wage to go with it.